The IMF explains why Indonesia is not included in the list of 28 countries queuing for assistance

TIME.CO, Jakarta – International Monetary Fund o IMF to ensure that Indonesia has not yet joined the 28 countries lined up to finance assistance to cope with current external pressures. Resilience of foreign exchange reserves for health tax be the main indicator.

IMF senior economist for Asia and the Pacific, Yan Carriere-Swallow, explained that Indonesia’s external resilience was maintained because Indonesia’s current economic management had greatly improved, mainly due to consolidation. budget that the government had implemented so far, as well as the monetary policy adjustments that had been made.

“We think this will help Indonesia maintain its stability, so we don’t think Indonesia needs IMF help even though the IMF will always be there to help its members,” Yan Carriere said. Swallow during a visit to the office. Time on Jalan Palmerah Barat, South Jakarta, Tuesday, November 1, 2022.

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According to him, the countries that have so far turned to the IMF for financial assistance come from Asia and mostly Latin America. Even so, he did not disclose the list of countries queuing for help, including 16 countries that had previously asked for help.

These countries are currently facing external shocks due to the current global situation triggered by the rapid rise in the central bank’s benchmark interest rate and the potential to continue at high levels. This is mainly due to the high global inflation rate caused by fluctuations in commodity prices.

This condition has tightened global liquidity, which has led to an increase in borrowing costs, thus upsetting their balance of payments. Furthermore, global trade is currently disrupted due to the disruption of global supply chains due to one of the effects of the war in Ukraine.

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